Cape Town’s Water and Sanitation Directorate has secured a R4.9 billion budget for the 2025/2026 financial year, marking a major step in the City’s efforts to bolster water resilience, expand sanitation services, and upgrade ageing infrastructure, Cape {town} Etc reports.
According to the City of Cape, the funding, effective from 1 July 2025, will support projects ranging from sewer replacements to groundwater development, ensuring reliable access to clean water and improved sanitation, especially in informal settlements.
The budget follows Mayor Geordin Hill-Lewis’s Invested in Hope budget announcement in late June, reinforcing the City’s commitment to sustainable water management amid rapid urban growth.
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Key investments in water and sanitation
1. Informal Settlements (R39.1 million)
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New taps and toilets will be installed in underserved areas, expanding basic service access.
2. New Water Programme (R492 million)
To reduce reliance on surface water (currently 98% of supply), Cape Town is diversifying its sources:
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Cape Flats Aquifer (R443m): Sustainable groundwater extraction at Hanover Park, Strandfontein North, Philippi.
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Atlantis Aquifer Upgrade (R25m): Enhancing managed aquifer recharge for long-term supply in the western region.
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By 2040, the city aims for 25% of its water to come from groundwater, desalination, and reuse.
3. Wastewater Treatment Upgrades (R1.81 billion – Largest allocation)
Major expansions include:
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Potsdam (R895m): Doubling capacity to 100 million litres/day.
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Macassar (R463m): Increasing treatment from 34 to 80 million litres/day.
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Wesfleur (R151m): Upgrading aeration systems for efficiency.
4. Sewer Network (R1.25 billion)
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City-wide pipe replacements (R355m): Reducing overflows from ageing infrastructure.
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Milnerton Bulk Sewer (R117m): Part of efforts to restore the Milnerton Lagoon.
5. Water Network (R259 million)
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Pipe replacements (R239m): Minimising bursts and leaks.
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Reservoir upgrades (R5m): Improving storage reliability.
6. Rivers and Flood Prevention (R135 million combined)
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Sir Lowry’s Pass River (R102m): Critical upgrades to prevent flooding.
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Liveable Urban Waterways (R31m): Revitalising six key waterways.
Councillor Zahid Badroodien, Mayoral Committee Member for Water and Sanitation, emphasised that the investments are non-negotiable for maintaining service reliability in a growing city.
‘We are committed to ensuring our communities have dignified access to basic services by reducing sewer overflows and accelerating the replacement of water and sewer pipes,’ he said.
The budget also addresses climate resilience, with funds for flood prevention and groundwater development to buffer against droughts.
Cape Town’s multi-billion-rand push reflects lessons from the 2018 drought, ensuring infrastructure keeps pace with population growth and climate pressures. With wastewater plants expanding and aquifers being tapped, the City aims to avoid future water crises while improving public health through better sanitation.
For residents, this means fewer pipe bursts, cleaner rivers, and a more reliable water supply, critical steps in building a water-secure future.
Badroodien stated, ‘We remain dedicated to providing reliable services while also investing in infrastructure to meet the needs of a growing city.’
With climate change intensifying, these projects could determine whether Cape Town stays ahead of the next water crisis.
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Picture: Getty Images
